UPDATE 3-Telecom Italia to sell Telecom Argentina stake for $960 mln

MILAN Nov 14 (Reuters) - Telecom Italia agreed to
sell its controlling 22.7 percent stake in Telecom Argentina
to Fintech Group for $960 million, as it presses on
with a plan to raise 4 billion euros to fix its balance sheet
and revive its business.

Telecom Italia said in a statement on Thursday the sale to
the U.S.-based investment fund was not expected to have a
significant impact on its consolidated net debt amounting to 28
billion euros ($38 billion).

Later on Thursday, Standard & Poor's cut Telecom Italia's
credit rating by one notch to 'BB+' with a negative outlook,
citing the company's persistent high debt and expectations of
continued pressure on growth in its Italian home market.

The ratings downgrade means that Telecom Italia, which faces
peak debt maturities in 2014, has lost its investment grade
status, making it more expensive for the company to borrow
money.